Sox Park Tax Break Gets Rolling

June 11, 1987|By Dorothy Collin, Chicago Tribune.

WASHINGTON — Plans for a new White Sox stadium received a big boost Wednesday when U.S. Rep. Dan Rostenkowski, a Chicago Democrat and chairman of the House Ways and Means Committee, introduced legislation that provides a federal tax break to help build the ballpark.

The provision, which allows for the issuance of tax-free bonds, is part of a bill making technical corrections in the tax reform act of 1986. Identical legislation was introduced in the Senate, but staff sources said it could be fall before Congress approves the complicated bill.

Rostenkowski`s action will enable the city and state ``to get the wheels rolling,`` said Ron Gibbs, Chicago`s liaison to Washington, D.C.

Rostenkowski`s action also indicated that his often-rocky relationship with Mayor Harold Washington has improved, at least to the point where they can do business for the city together.

``I hope this improves my relationship with the city of Chicago,``

Rostenkowski told reporters.

``This indicates a very positive working relationship between the mayor and chairman Rostenkowski,`` Gibbs said. ``Both the mayor and the chairman have something in common--the city.``

Although language allowing the tax-free bonds was included in the 1986 tax bill, the city changed the site of the Sox stadium and the Illinois legislature changed the identity of the agency that would build it. That meant the bill`s language had to be corrected if the tax break was to be retained.

But Rostenkowski, whose committee is responsible for initiating tax legislation, contended that he would have trouble changing the law because then his colleagues would all want favors.

There was speculation that the real problem was lingering bitterness over the recent mayoral race.

But after several meetings and phone conversations with the mayor, Rostenkowski was able to find a way.

``I wanted to know what his priorities were,`` Rostenkowski said.

``He said we would talk more often.``

There also was speculation that Rostenkowski was waiting to see whether the city would decide to build a stadium for the Chicago Bears. One of his best friends and business associates, developer Daniel Shannon, had proposed building the football stadium as part of a huge shopping mall he and his partners want to build just northwest of the Loop.

Washington announced Monday that the stadium would instead go on the West Side near the Chicago Stadium, 1800 W. Madison St. But it has become apparent that city officials are dropping objections to Shannon`s mall, which they had earlier opposed as a threat to State Street business.

Two days later, Rostenkowski announced the provision allowing the tax-free bonds for the White Sox stadium.

Asked about the timing of the announcements, Rostenkowski said:

``There was no connection. None.``

The provision, which applies only to the White Sox, allows up to $250 million in tax-free bonds to be issued. The lower interest rate carried by tax-exempts could save the city as much as $40 million, Rostenkowski said.

Although the earlier language was specific as to the site, the new provision merely says the stadium should be located in the city. Gibbs said that did not mean there were plans to shift the site again. Rather, he said, it allows ``flexibility.``

The provision also recognizes that an Illinois Sports Facility Authority, not the Illinois Development Finance Authority, will build the ballpark.